Local Taxation Flashcards
Key Legislation
Local Government and Finance Act 1988
Definition of Rateable Value and where is it found
Local Government and Finance Act (lgfa) 1988 Schedule 6 Paragraph 2
* The amount equal to what a property would reasonaly be expected to be let from year to year based on 3 assumptions (seperate card)
What are the 3 assumptions of Rateable Value
- Lease begins at AVD
- Reasonable state of repair
- FRI lease with T paying all expected rates and taxes
Material Day
Day on which physical factors are taken into account - sch 6 (paragraph 7) LGFA 1988.
6 Factors to Consider
A. matters affecting physical state or enjoyment of the hereditament;
B. mode or category of occupation
C. quantity of minerals / substances extracted
D. quantity of refuse permanently deposited on hereditament
E. matters affecting physical locality in which hereditament is situated
F. Use or occupation of surrounding properties
Effective Date
The date at which liability begins
Antecedent Valuation Date (AVD)
Date property is valued from and economic factors are considered, 2 years prior to beginning of new rating list
What are the 7 Hypothetical Tenancy Assumptions
- Property is Vacant
- Available to let on an annual tenancy
- FRI basis
- Reasoanable repair (L puts property into reasonable repair prior to start of tenancy if economically reasonable to do so)
- Tenant responsible for rates
- Value as it stands/current use in line with Rebus Sic Stantibus
- No major alterations
What is the role of an Expert Witness
A duty to the court.
What is the role as Advocate
A duty to the client (the VOA).
Case Law for Heirarchy of Evidence and heirarchy principles
Lotus & Delta Ltd v Culverwell and Leicester City Council 1976
1. Subject rent should be starting point
2. Closer comparables are to time (AVD), subject and conditions, the more weight attached
3. Other rents should be used where available
4. Other VO assessments of comparable properties
5. Value formed on actual rent and degree of comparability of evidence
6. Where no comparable evidence, subject given most weight
What are the 4 tenants of Rateable occupation and relevant case law
- Actual
- Beneficial
- Exclusive
- Transient (degree of permanence)
John Laing & son v Kingswood Assessment Committee
What are the 4 tenants of Rateable occupation and relevant case law
- Actual
- Beneficial
- Exclusive
- Transient (degree of permanence)
John Laing & son v Kingswood Assessment Committee
How is a hereditament identified
Definable position
Single Occupation
Single Use
Single Geographical Location
Key Case Law for AVD
K shoe Shops v Hardy and Westminster City Council - to ensure that there is consistency
Ladies Hosiery V West Middlesex Assessment Comittee 1932 - Uniformity does not equal correctness
What is a hereditament and key case law
Unit of Assesmnet which would fall under a rating list category
Gilbert V Hickenbottom
